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Recommendations for creating a more robust Electric Vehicle ecosystem in India
Recommendations for creating a more robust Electric Vehicle ecosystem in India

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We know that the future is going to be electric. Electric vehicle sales have leapfrogged in the last 2 years. A post-Covid resurgence can be witnessed, with 2-wheeler sales witnessing a 23% growth from FY20, and 3-wheeler sales witnessing a 13% CAGR to reach 1.77 lac units in FY22. However, 4-wheeler have witnessed the largest jump, with over 150% increase in sales since FY20.

Various players in the ecosystem face many challenges to boost the adoption of electric vehicles in the country. While we are addressing those challenges, it is also important and relevant to assess future recommendations to create a more robust ecosystem. The recommendations are across the following –

 

EV 9

 

  1. Technology –
    1. More tech companies need to be a part of the ecosystem and use latest technologies to create unified platforms tying all parts of the ecosystem together in one place for all players.
    2. In-depth research is needed on reducing battery cost, increasing battery densities etc. to help create batteries with longer range.
    3. There is a need for standardization of battery form and size for battery swapping to be a success.
    4. Designing more efficient BMS systems is necessary for faster adoption of EVs.
  1. Government –
    1. There is a need for standardization of infrastructure of batteries.
    2. Safety standards must be enforced. In India, fire and safety norms for batteries and charger performance testing are still not present.
    3. More tax incentives must be provided in all states. Currently even within NCR states, there is not a uniform incentive plan.
    4. Investments in R&D should continue.
    5. There is an absolute need for every state in the country to have an EV policy.
    6. The govt. must enable infrastructure, whether highways or road transport, for battery-as-a-service or battery swapping business models to be a success.
    7. There needs to be a national scrappage policy for reclaiming and reusing batteries.
    8. State and central govt. need to get more involved in setting up charging infrastructure in public places, with some policies like mandatory charging stations for RWAs to be enforced.
    9. More states should offer subsidies.
    10. The govt. must enable an ecosystem and provide incentives, especially for tech companies, to enable development of mobility solutions.
  1. Charging Infrastructure –
    1. There is a need for subsidies on real estate for setting up charging stations and battery swapping stations, either set up in petrol pumps or some retail malls. Clarity on guidelines and permissions for setting up and running the charging and battery swapping stations is needed.
    2. There is a need for proper planning on deployment of chargers. Currently, the public chargers, approved through the subsidy schemes, are slow chargers. It is imperative that while setting up, the public chargers should be fast chargers.
    3. Companies should use AI and data analysis for efficient monitoring and utilization of chargers to help discoms manage demand side energy management activities.
    4. There needs to be integration of smart chargers to reduce wattage, capacity as required.
    5. Companies should implement systems such as Time of Use (ToU) and Time of Day (ToD) to manage loads and pricing during peak times to encourage consumer charging behaviour during off-peak times.
    6. There should be integration of V2X (vehicle to grid, vehicle to home base systems etc.) for enabling grid safety.
    7. Need for integrating renewable energy sources in charging infrastructure is a must.
    8. There is a need to enable tech system integrators to use AI and other technologies widely, build platforms for management and monitoring of charging patterns, use data to predict charging patters, grid planning etc and make it more widely available and adaptable.
  1. Ecosystem and industry
    1. More companies need to be a part of the ecosystem to ensure fair competition and lower prices for consumers for increased adoption
    2. More industry-startup collaborations are needed for R&D across vehicles and battery components
    3. All OEMs and Tier 1 suppliers should come together to pool resources and develop common technologies for platforms, hardware etc. This can also be done through JVs with tech providers.
    4. Investment for localisation of manufacturing should be prioritized.
    5. A robust EV marketplace must be created.
    6. OEMs should introduce disrupting business models including pay-per-use, leasing etc.
    7. Tech companies should become more integrated with the overall ecosystem and develop consolidated solutions and platforms encompassing all the players across the value chain.
  1. Charging Infrastructure
    1. Govt needs to take initiatives for generating awareness among the consumers and push EV manufacturers to run consumer awareness programmes.
    2. Awareness regarding the reuse or alternative uses for batteries should be explored. These are the batteries which cannot be deployed in EVs once their ‘depth of discharge’ is not at optimum capacity. They can be further used as stationery batteries or across non-EV uses.
    3. Collection efficiency of used batteries still needs to be made more robust. Currently, collection of used batteries is still done through the informal sector, who recycle it through unregistered recyclers. More stringent penalisation mechanism must be enforced for improper recycling of batteries. Better tracking of batteries through mandatory tagging to track the life cycle of the battery from its initial use to recycling is also necessary.

While the road is long, but massive headway is already being made which will propel Indian EV market to newer levels.

 

Read more insights about Electric Vehicles in the NASSCOM Report - "The Future is Electric"

NASSCOM Insights – https://community.nasscom.in/communities/engineering-research-design/future-electric-discussion-paper-electric-vehicles-india

NASSCOM website - https://nasscom.in/knowledge-center/publications/future-electric-discussion-paper-electric-vehicles-india


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Vandhna Babu
Principal Analyst - Research

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